COTTON IN EGYPT AND THE SUDAN. 



81 



The conditions when dealing with large estates or with land 

 companies change to a certain extent, when the cultivation of inferior 

 soil is taken in hand, but the yields obtained from such lands, 

 amounting to about 1 to 2 kantars cotton per feddan, do not cover 

 the high cost of land improvement, and are, of course, not sufficient 

 to pay a fair revenue on the cost of the land and of the improvement. 

 For instance, 

 Price of the land E40, plus cost of improvement 10 to 15 



at 8 per cent per annum E. 4 



but 



Receipts from 2 kantars cotton at $17 E.7 



Receipts from cotton seed ,, i 



Less cost of cultivation 



E. 7J 

 .E. 4 



Showing a loss per feddan or E. | 



It must be admitted that under exceptionally favourable local 

 conditions, where labour is plentiful and cheap, the fertility of the 

 soil enhanced by means of an excellent system of irrigation and 

 drainage, and if the management is in the hands of experienced 

 experts, even a European undertaking may be made remunerative, 

 but such plantations which pay 7 to 9 per cent, (this might be con- 

 sidered a satisfactory return on the capital in Egypt) are extremely 

 seldom met with. 



The large owners of land, instead of cultivating themselves the 

 improved land, prefer therefore to let it in small lots to the fellaheen, 

 and after a few years they try to sell it at as high a price as possible. 

 As in such purchases of land cash payments are only on rare occasions 

 made, it is usual that the seller of land is interested in his property 

 for many years after effecting the sale, and he tries to remedy this 

 drawback by transferring the mortgages on one or the other of the 

 existing Mortgage Banks. Unfortunately, it occurs frequently that 

 the improved land, for lack of proper supervision, deteriorates owing 

 to the primitive method of cultivation, and, of course, its value also 

 decreases, thus causing a loss to all interested parties. The follow- 

 ing tabulation of the dividends paid or of the net profits earned by 

 the land companies during the last few years shows this effect : 



Societe Anonyme du Behera. 



Established 1888. Share capital, 1908: ^E737,500. 

 Debentures, 1908: 197,125. Reserves, 1908: ^62,645. 



